Building a Team to Capitalize on the Promise of Big Data
About IMA®
IMA®
professionals in business, is one of the largest and most respected
associations focused exclusively on advancing the management
accounting profession.
Globally, IMA supports the profession through research, the CMA®
networking and advocacy of the highest ethical business practices.
IMA has a global network of more than 80,000 members in 140
countries and 300 professional and student chapters. Headquartered
in Montvale, N.J., USA, IMA provides localized services through its four
Africa. For more information about IMA, please visit www.imanet.org.
Sponsored by Robert Half
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© January 2016
Institute of Management Accountants
10 Paragon Drive, Suite 1
Montvale, NJ, 07645
www.imanet.org/thought_leadership
About the Author
Kip Krumwiede, CMA, CPA, Ph.D., is the director of
research for IMA. Kip received his Master of Accounting
degree from Brigham Young University and his Ph.D.
from the University of Tennessee. Prior to joining IMA,
Kip spent 18 years as a management accounting
professor at universities, including Brigham Young
University, Boise State University, and the University of
Richmond, and worked for two Fortune 500 companies
in a variety of positions. In addition, Kip has published
more than 20 articles in both practice and academic
journals. He can be reached at (201) 474-1732 or
[email protected].
Building an Accounting and Finance Team
to Capitalize on the Promise of Big Data
Table of Contents
Introduction ................................................................................................... 5
The Talent Gap................................................................................................ 6
How to Increase Business Analytics Success . ............................................................. 8
Sidebar: What the Research Means for Small and Midsize Enterprises ................................ 11
Conclusions . ................................................................................................. 11
Key Hiring and Training Strategies . ....................................................................... 12
Respondent Demographics................................................................................. 13
TECHNOLOGY
ENABLEMENT
Building an Accounting and Finance Team to
Capitalize on the Promise of Big Data
Introduction
Shane Hood is the chief financial officer (CFO) for Total Highway Maintenance, LLC, a highway
construction company with fewer than 200 employees. A second-generation family-owned
business, the company has experienced significant growth over the last three years. Like any
business, Total Highway Maintenance must analyze past performance to inform future strategy
and planning. Hood’s team used to be able to “cobble” together the data needed for business
analytics using various systems and internal resources.1
“Now,” Hood says, “given the size of the organization, it is imperative that our employees
have analytical skills to evaluate the information and make informed business decisions.”
Although business analytics skills are extremely important to the success of Hood’s company, the
finance team is under-resourced in this area. Hood cites three contributing factors to this skills
gap: (1) tremendous company growth in a short time period, (2) a limited number of existing
employees with the necessary business analytics and Big Data skill sets, and (3) the adoption of
new technology platforms.
Hood’s company is not an isolated example. Leveraging Big Data is at the top of many
CFOs’ wish lists as they look to harness the power and insight they can gain by effectively
analyzing their own business intelligence. Despite the availability of advanced algorithms and
sophisticated systems, it is the people behind the processes who guarantee the success of these
initiatives. Unfortunately, accounting and finance leaders are not only having trouble finding the
technical and nontechnical skills they need among existing staff, but they also are discovering
that these skills are not easy to identify precisely. That makes it even tougher to recruit talent
from the outside—a pool that is already shrinking.
IMA® (Institute of Management Accountants) and Robert Half surveyed nearly 500 financial
executives and managers to learn how companies are finding and retaining people with the
technical and nontechnical skills they need for Big Data analytics projects and to identify
effective recruiting, retention and training practices.
We use the term “business analytics” to refer to statistical modeling and analysis of huge data sets to support strategic
decision making. It includes business intelligence (converting raw data into useful information), data mining, and
customer and market analysis.
1
There are at least three types of analytics that can be applied to raw data: descriptive, predictive, and prescriptive. The
majority of companies use descriptive analytics, which describes past performance and its underlying causes. Predictive
analytics includes internal and external data and uses advanced processing algorithms to predict what will happen in
the near future based on specified drivers. Prescriptive analytics provides suggested actions that take advantage of the
forecasts provided by predictive analytics.
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TECHNOLOGY
ENABLEMENT
Building an Accounting and Finance Team to
Capitalize on the Promise of Big Data
The survey found that accounting and finance teams are being asked to provide strategic
data-driven analyses and recommendations using many types of business analytics processes.
Other takeaways include:
• Many companies report limits to the business analytics expertise of their financial team.
• Companies are experiencing significant skills gaps in both technical and nontechnical
areas, and they are struggling to find and hire people who can fill open positions. In part,
this is due to a competitive hiring marketplace for skilled accounting and finance talent.
• Companies can take steps to build teams with in-demand skills by improving
compensation packages and training programs.
• In addition to professionals with the requisite skills, other success factors for data
initiatives include the right information systems, the support of top management, and
cross-functional support.
The Talent Gap
Finding accounting and finance professionals with business analytics skills is difficult, making it
especially challenging for department leaders to recruit, develop, and retain people with the
requisite abilities. When building their teams, managers most commonly seek skills in financial
analysis (87%), followed by budgeting, planning, and forecasting (85%), operational analysis
(82%), and cost management (81%).
The research revealed significant skills gaps in many of the areas employers need most
(see Table 1), especially:
• Identifying key data trends
• Data mining and extraction
• Operational analysis
• Technological acumen
• Statistical modeling and data analysis
Table 1: Technical Skills Gap
Important
to Success
Possessed by
Your Team
Talent
Gap
Financial analysis
87%
69%
18%
Operational analysis
82%
54%
28%
Budgeting, planning, and forecasting
Cost management
Technological acumen
Identifying key data trends
Data mining and extraction
Statistical modeling and data analysis
Enterprise resource planning (ERP) systems
Customer lifetime value (CLV)
85%
81%
77%
75%
71%
62%
61%
55%
63%
61%
50%
46%
43%
35%
40%
32%
22%
20%
27%
29%
28%
27%
21%
23%
6
TECHNOLOGY
ENABLEMENT
Building an Accounting and Finance Team to
Capitalize on the Promise of Big Data
Exacerbating current challenges is the fact that these skills are not easy for financial
professionals to acquire while also performing their other responsibilities. Companies can give
themselves a head start by hiring technical specialists to embed in their teams and by purchasing
preprogrammed modeling tools that can be easily taught to financial analysts.
No matter how well these technical skills are represented or developed within an organization,
however, they are not enough. Successful Big Data projects—those completed on time, on
budget, and meeting their specified objectives—also require an array of nontechnical skills.
Shortage of Nontechnical Skills
Nontechnical skills, or “soft skills,” used to be nice to have. Now they are mandatory. In particular,
financial leaders want staff to have excellent communication skills, both verbal and written. With
accounting and finance professionals increasingly expected to serve as business partners—
particularly as experts who can use data analytics to provide strategic recommendations—
companies need them to be problem solvers and readily adaptable to change.
Other soft skills that managers prioritize are:
• Process improvement
• Relationship building
• Strategic thinking and execution
• Industry knowledge
• Leadership
• Decision analysis
• Curiosity—and a willingness to continue asking questions to find the right answer
• Business acumen
In other words, finding data is just part of the equation—and may just be the midpoint in the
process. Using their knowledge of the business, staff must also be able to turn the information they
mine into actionable guidance. The ability to communicate findings and make recommendations is
a requisite for success with data-related initiatives.
Talent gaps also exist here for companies. The most significant nontechnical skills gaps are
found in decision analysis (37%), process improvement (35%), strategic thinking and execution
(32%), adaptability to change (31%), and communication skills (29%). For employers, these gaps only
heighten staffing challenges.
Those surveyed reported several difficulties in hiring staff with business analytics expertise. A
shortage of accounting and finance professionals is a common—and persistent—issue for firms,
but the research also suggests that other staffing problems are self-inflicted. Financial leaders most
commonly reported a lack of competitive compensation as the reason for their hiring challenges,
with inadequate workforce planning the second most frequent response (see Figure 1).
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TECHNOLOGY
ENABLEMENT
Building an Accounting and Finance Team to
Capitalize on the Promise of Big Data
Insufficient—or nonexistent—
Figure 1: Biggest Business Analytics Hiring Challenges
0%
10%
20%
30%
Lack of competitive compensation
23%
Not enough professionals with business
analytics skills available
22%
training programs also are a
frequent obstacle. In the current
employment environment,
31%
Inadequate workforce planning
Poor job description
40%
failure to offer attractive
salary, benefits, and career
development packages and to
employ sound staffing strategies
16%
will hinder the success of Big
Data initiatives—or any other
effort, for that matter.
How to Increase Business Analytics Success
Accounting and finance managers
Figure 2: Biggest Contributors to Successful Data Initiatives
report that, besides a lack of people
0%
with the needed skills, the biggest
obstacles to success with Big Data
projects are resistance to change
in the organization and inadequate
information systems. Companies that
have success with data initiatives
maintain the needed information
systems and enjoy support from top
management and other functions
throughout the business (see Figure 2).
20%
40%
60%
People with the right skills
72%
Information systems
41%
Top management support
39%
Cross-functional support
Early success solving a problem with
business analytics
Keeping analytics and processes
confidential
80%
34%
15%
9%
Total Highway Maintenance’s Solution
Some businesses are finding their way around these barriers. Shane Hood of Total Highway
Maintenance describes his approach to addressing the talent gap in three parts:
1. “
Train up our existing employees to better understand the data that is being analyzed, what
information they should be looking for, and what information should raise a ‘red flag.’”
2. “When hiring, we look for candidates who have a foundational understanding of analytics
and why it is important to our business to analyze the data and identify trends we can use
to proactively manage the business.”
3. “We are implementing two new technological platforms (one accounting and one
operational), which will provide a seamless portal to obtain real-time data to analyze and
proactively manage the business.”
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TECHNOLOGY
ENABLEMENT
Building an Accounting and Finance Team to
Capitalize on the Promise of Big Data
As part of their efforts, other financial leaders say they are closely examining the types of
roles they need to fill. The most common positions organizations both employ and want to fill
are financial analysts, project managers, and business systems analysts.
One particular hiring challenge for companies is business intelligence analyst positions.
Eighteen percent of respondents would like to fill such roles, but just 9% currently employ these
professionals (see Table 2).
Table 2: Sought-After Analytics Job Titles
Percent of Companies that
Currently Have These Jobs
Percent of Companies that
Would Like to Fill These Jobs
Financial planning and analysis (FP&A) analyst
35%
29%
Business systems analyst
20%
19%
Project manager
25%
Data analyst
17%
16%
Business intelligence analyst
15%
9%
Data scientist
18%
3%
4%
Retaining Staff with Business Analytics Skills
Another way to address hiring challenges is to enhance employee retention. Some companies
find it far easier to keep staff with the necessary expertise than to hire new talent. Just 26% of
respondents cite difficulties retaining staff with in-demand business analytics abilities, while 48%
say it was difficult to hire this kind of talent.
Figure 3: Most Effective Ways to Retain Financial Professionals with Business Analytics Skills
0%
5%
10%
15%
20%
25%
Supportive attitude from top management
28%
Comprehensive benefits
18%
Professional development
Above-market compensation
Developed career path
30%
16%
14%
13%
Accounting and finance leaders note that the most effective factor in retaining financial
professionals with analytics skills is a supportive attitude from top management (see Figure 3).
The study also found that companies succeeding in keeping top performers on board offer
attractive benefits and above-average compensation, provide professional development
opportunities, and develop career paths for employees. Additional strategies include
establishing a supportive corporate culture, helping staff achieve work-life balance, and keeping
the work fresh and challenging.
9
TECHNOLOGY
ENABLEMENT
Building an Accounting and Finance Team to
Capitalize on the Promise of Big Data
Retention can only go so far, however, since the number of internal employees who already
have the required skills is typically limited. That may be why developing from within was at the top
of the list of important practices in building a team’s analytics skills (68%), as shown in Figure 4.
Figure 4: Important Practices in Building a Team’s Business Analytics Skills
0%
10%
20%
30%
40%
50%
Develop skills from within
80%
44%
Use consultants or project professionals
39%
Networking within professional associations
31%
Use recruiting firm
24%
Offer internships for high-potential students
Recruit from technical schools
70%
68%
Hire from outside the company
Partner with universities
60%
19%
16%
12%
The most common types of training for these competencies are:
• In-house
• CPE
• Tuition reimbursement The number of companies stepping up to the training plate is small, however. Only 14% of
respondents say their firm offers training related to business analysis.
In addition to internal development, Figure 4 shows successful practices for building a
team’s analytics skills include hiring from outside the company (44%), working with consultants
or project professionals (39%), networking within professional associations (31%), and using a
recruiting firm (24%).
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TECHNOLOGY
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What the Research Means for Small
and Midsize Enterprises
The survey reveals size-related differences in
firms’ priorities for Big Data. The majority of
respondents at small and medium enterprises
or SMEs (defined as 1,000 employees or less),
for example, say they place more importance
on nontechnical skills than on technical skills
as compared to larger firms. The soft skills
cited most often in demand are negotiation
and leadership.
Fifty-nine percent of smaller companies are
seeking employees with business analysisrelated skills. In addition, the research found
a scarcity of ERP skills at SMEs, presumably
because the firms are less likely to have
these systems.
Some of these differences may be explained
by the fact that smaller firms often do not have
complete data to begin with. When asked
about the biggest reason for the analytics
skills gap in his firm, one healthcare executive
said, “Data collection isn’t viewed as a high
priority in the rank-and-file staff, and therefore
the data collected on our clientele is sketchy
and hard to analyze since the data variables
needed to stratify the data are often missing.”
When asked what his firm plans to do to
address the gap, he said, “We’ve launched
a companywide initiative to make sure the
demographic and payer data is entered on
every patient every time.”
While their needs differ from their larger
counterparts, SMEs experience similar
difficulties—and successes. Small businesses
are being hindered by inadequate
compensation and workforce planning. To
build their team’s skills, SMEs are focusing
on developing data analytics expertise from
within while also looking to hire from outside
the company.
Building an Accounting and Finance Team to
Capitalize on the Promise of Big Data
Conclusions
As business analytics and Big Data become higher
priorities for accounting and finance teams, finding
people with the requisite skills, both technical
and nontechnical, is the most important factor
for success. Yet it also represents a significant
challenge for organizations. Companies seek
functional skills ranging from financial analysis
and planning, budgeting, and forecasting to
operational analysis and cost management, along
with soft skills such as communication, problem
solving, and adaptability to change. There are
significant talent gaps between what is desired
and what exists internally within an enterprise.
Some companies are finding an easier road
to success by focusing on developing and
retaining current staff. Businesses are also
communicating the value of Big Data initiatives
to gain broader organizational support. Those
lacking sufficient data to even begin a Big Data
project are upgrading and integrating existing
information systems.
Lastly, some firms may need to improve
the change management process. Managers
unaccustomed to considering data-mined
recommendations may be resistant to adopting
them, especially when the recommendations
suggest a different direction than management
is currently taking. In the final analysis, all the
good data in the world does not help much if
it is not used.
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TECHNOLOGY
ENABLEMENT
Building an Accounting and Finance Team to
Capitalize on the Promise of Big Data
Key Hiring and Training Strategies
•
Hire a technical specialist to embed in the current staff to help train others
•Look for candidates who have a foundational understanding of analytics and why it is important to
analyze the data and identify trends
•
Offer attractive benefits and above-average compensation, and help staff achieve work-life balance
•
Lobby for support from top management and other functions throughout the business
•
Provide professional development opportunities, and develop career paths for employees
•Train up existing employees to better understand the data, what information they should be looking for,
and what information should raise a “red flag”
•
Purchase preprogrammed modeling tools that can be easily taught to financial analysts
•Ensure the information systems provide a seamless portal to obtain real-time data that can be used to
analyze and proactively manage the business
12
TECHNOLOGY
ENABLEMENT
Building an Accounting and Finance Team to
Capitalize on the Promise of Big Data
Respondent Demographics
IMA and Robert Half sent a survey to professionals identified with a job title such as CEO,
vice president, CFO, controller, director, or accounting manager in the United States and
Canada. A total of 479 responses were received. Tables 3 through 6 provide demographic
characteristics of the respondents.
Table 3: Respondent Job Titles
No.%
Controller, financial controller, or comptroller
128
27%
71
15%
Finance or accounting manager
Executive officer or vice president
CFO
Finance director
Chief operating officer Other
No response
Total
101
21%
6714%
36
7%
5
1%
6814%
3
1%
479100%
Table 4: Industries
No.%
Manufacturing: Aerospace, Automotive, all other Manufacturing
11424%
Business Services: Advertising, Consulting, Legal, Publishing
Financial Services: Banking, Insurance, Brokerage, Investment
Retail: Apparel, Consumer Packaged Goods, Wholesale/Retail
6213%
5712%
5411%
Healthcare: Facilities, Payers, Providers, Supporting Products and Services35 7%
Technology: Biotech, Computer, Software, Technology, Telecom
Institutions: Government, Education, Not-for-Profit
Construction & Real Estate
Transportation & Utilities
Other
No response
Total
306%
5512%
316%
184%
204%
3
1%
479100%
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TECHNOLOGY
ENABLEMENT
Building an Accounting and Finance Team to
Capitalize on the Promise of Big Data
Table 5: Where Is Your Business Unit Primarily Located?
No.%
United States
411
Canada
5511%
Other
No response
Total
86%
102%
3
1%
479100%
Table 6: How Many Employees Are in Your Organization?
No.%
Less than 50
124
51-100
101-200
201-500
501-1,000
1,001-10,000
More than 10,000
No response
Total
26%
8117%
6012%
6313%
4710%
6714%
33
4
7%
1%
479100%
14